Question

Rick works for a towing company and earns $800 every week. His monthly expenses are the following:

Rent - $650
Power - $140
Water - $90
Car Payment - $350
Car Insurance - $150
What is the DTI percent for his car expenses?
a) 24%
b) 31%
c) 36%
d) 44%

Answer 1

Rick's DTI percent for his car expenses is 15.625%, which is not among the given options.

Step-by-step explanation:

To calculate the DTI percent for Rick's car expenses, we need to find the percentage of his car expenses in relation to his total monthly income. First, we need to find Rick's total monthly income by multiplying his weekly income by the number of weeks in a month. If Rick earns $800 per week, his monthly income would be $800 * 4 = $3200. Next, we calculate the total of Rick's car expenses, which is the sum of his car payment and car insurance: $350 + $150 = $500. To find the DTI percent for his car expenses, we divide his total car expenses by his total monthly income and multiply by 100: ($500 / $3200) * 100 = 15.625%. Therefore, the correct answer is not among the options provided.